India, Aug. 19 -- Marvell Technology is getting a major boost from Google's growing AI chip business. The chipmaker will help Google develop its custom AI chips, while Google has also received an option to buy as much as $12.2 billion worth of Marvell shares.

The news sent MRVL stock sharply higher. Marvell shares jumped more than 11% in premarket trading after the deal was announced. At the same time, Broadcom stock fell. Broadcom, which has been Google's main partner for developing custom AI chips, saw its shares fall more than 2% in premarket trading, according to Reuters.

The deal gives Marvell a bigger role in Google's AI chip plans. The agreement covers a wide range of chips and related technologies that are designed to work with ...